Aviat Networks Announces Fiscal 2025 Fourth Quarter and Twelve Months Financial Results

Fourth Quarter Total Revenue of $115.3 million Operating Income of $8.9 million; Non-GAAP Operating Income of $12.9 million Net Income of $5.2 million; Adjusted EBITDA of $15.1 million Diluted Earnings per Share of $0.40; Non-GAAP Diluted Earnings per Share of $0.83 , /PRNewswire/ -- Aviat Networks, Inc. ("Aviat Networks," "Aviat," or the "Company"), (Nasdaq: AVNW), the leading expert in wireless transport and access solutions, today reported financial results for its fiscal 2025 fourth quarter and twelve months ended June 27, 2025. Fourth Quarter Highlights Completed fifth consecutive fiscal year of revenue growth Grew quarterly GAAP Net Income to $5.2 million, an increase of $3.6 million or 236% versus the same period a year ago Achieved the third consecutive record for quarterly Adjusted EBITDA with $15.1 million at 13.0% margin Fourth Quarter Financial Highlights Total Revenues: $115.3 million; North America revenues of $58.0 million, up $1.8 million from the year ago period GAAP Results: Gross Margin 34.2%; Operating Expenses $30.6 million; Operating Income $8.9 million; Net Income $5.2 million; Net Income per diluted share ("Net Income per share") $0.40 Non-GAAP Results: Adjusted EBITDA $15.1 million; Gross Margin 34.7%; Operating Expenses $27.1 million; Operating Income $12.9 million; Net Income $10.7 million; Net Income per share $0.83 Cash and Cash Equivalents: $59.7 million Net Debt: $27.9 million Full Year Financial Highlights Total Revenues: $434.6 million, up 6.5% from last year GAAP Results: Gross Margin 32.1%; Operating Expenses $128.9 million; Operating Income $10.6 million; Net Income $1.3 million, Net Income per diluted share $0.10 Non-GAAP Results: Adjusted EBITDA $37.1 million; Gross Margin 32.8%; Operating Expenses $113.5 million; Operating Income $29.0 million; Net Income per diluted share $1.67 Fiscal 2025 Fourth Quarter and Twelve Months Ended June 27, 2025 RevenuesThe Company reported total revenues of $115.3 million for its fiscal 2025 fourth quarter, compared to $116.7 million in the fiscal 2024 fourth quarter, a decrease of $(1.3) million or (1.1)%. North America revenue of $58.0 million increased by $1.8 million or 3.2%, compared to $56.2 million in the prior year due to growth in private network business. International revenue of $57.3 million decreased by $(3.1) million or (5.2)%, compared to $60.5 million in the prior year due to timing of certain mobile network projects. For the twelve months ended June 27, 2025, total revenue increased by 6.5% to $434.6 million, compared to $408.1 million in the same period of fiscal 2024. North America revenue of $207.6 million increased by $1.5 million or 0.7%, compared to $206.1 million in the same period of fiscal 2024. International revenue of $227.0 million increased by $25.0 million or 12.4% as compared to $202.0 million in the same period of fiscal 2024. Gross MarginsIn the fiscal 2025 fourth quarter, the Company reported GAAP gross margin of 34.2% and non-GAAP gross margin of 34.7%. This compares to GAAP gross margin of 35.3% and non-GAAP gross margin of 35.9% in the fiscal 2024 fourth quarter, a change of (110) and (120) basis points, respectively. The fluctuations were driven by project and regional customer mix. For the twelve months ended June 27, 2025, the Company reported GAAP gross margin of 32.1% and non-GAAP gross margin of 32.8%. This compares to GAAP gross margin of 35.5% and non-GAAP gross margin of 36.4% in the same period of fiscal 2024. Operating ExpensesThe Company reported GAAP total operating expenses of $30.6 million for the fiscal 2025 fourth quarter, compared to $35.7 million in the fiscal 2024 fourth quarter, a decrease of $(5.1) million or (14.3)%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition expenses for the fiscal 2025 fourth quarter were $27.1 million, compared to $31.3 million in the prior year, a decrease of $(4.1) million or (13.2)%. For the twelve months ended June 27, 2025, the Company reported total operating expenses of $128.9 million, compared to $125.3 million in the same period of fiscal 2024, an increase of $3.5 million or 2.8%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition expenses for the twelve months ended June 27, 2025 were $113.5 million, as compared to $105.4 million in the same period of fiscal 2024, an increase of $8.1 million or 7.7%. Operating IncomeThe Company reported GAAP operating income of $8.9 million for the fiscal 2025 fourth quarter, compared to $5.5 million in the fiscal 2024 fourth quarter, an increase of $3.4 million or 62.8%. On a non-GAAP basis, the Company reported operating income of $12.9 million for the fiscal 2025 fourth quarter, compared to $10.6 million in the prior year, an increase of $2.3 million or 21.9%. For the twelve months ended June 27, 2025, the Company reported GAAP operating income of $10.6 million, as compared to $19.4 million in the same period of fiscal 2024, a decrease of $(8.8) million or (45.5)%. Operating income decreased primarily due to merger and acquisition related expenses. On a non-GAAP basis, the Company reported operating income of $29.0 million, compared to $43.1 million in the same period of fiscal 2024, a decrease of $(14.1) million or (32.7)%. Income TaxesThe Company reported GAAP income tax expense of $5.0 million in the fiscal 2025 fourth quarter, compared to $3.1 million in the fiscal 2024 fourth quarter. For the twelve months ended June 27, 2025, the Company reported GAAP income tax expense of $2.2 million compared to $6.1 million in the same period of fiscal 2024. Net Income / Net Income Per ShareThe Company reported GAAP net income of $5.2 million in the fiscal 2025 fourth quarter and GAAP net income per share of $0.40. This compared to GAAP net income of $1.5 million or GAAP net income per share of $0.12 in the fiscal 2024 fourth quarter. On a non-GAAP basis, the Company reported net income of $10.7 million or non-GAAP net income per share of $0.83, compared to non-GAAP net income of $9.2 million or $0.72 per share in the prior year. The Company reported GAAP net income of $1.3 million for the twelve months ended June 27, 2025, or GAAP net income per fully diluted share of $0.10. This compared to GAAP net income of $10.8 million or $0.86 per share in the comparable fiscal 2024 period. On a non-GAAP basis, the Company reported net income of $21.4 million or net income per share of $1.67 for the twelve months ended June 27, 2025, as compared to non-GAAP net income of $39.2 million or $3.15 per share in the comparable fiscal 2024 period. Adjusted EBITDAAdjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA") for the fiscal 2025 fourth quarter was $15.1 million, compared to $11.9 million in the fiscal 2024 fourth quarter. For the twelve months ended June 27, 2025, the Company reported Adjusted EBITDA of $37.1 million, as compared to $48.1 million in the comparable fiscal 2024 period. Balance Sheet HighlightsThe Company reported $59.7 million in cash and cash equivalents as of June 27, 2025, compared to $49.4 million as of March 28, 2025. As of June 27, 2025, total debt was $87.6 million. Fiscal 2026 Full Year GuidanceThe Company established its fiscal 2026 full year revenue and Adjusted EBITDA guidance as follows: Full year Revenue between $440 and $460 million Full year Adjusted EBITDA between $45.0 and $55.0 million Conference Call DetailsAviat Networks will host a conference call at 4:15 p.m. Eastern Time (ET) on September 10, 2025, to discuss its financial and operational results for the fiscal 2025 fourth quarter ended June 27, 2025. Participating on the call will be Peter Smith, President and Chief Executive Officer; Michael Connaway, Sr. Vice President and Chief Financial Officer; and Andrew Fredrickson, Vice President, Corporate Finance and Interim Chief Financial Officer. Following management's remarks, there will be a question and answer period. Interested parties may access the conference call live via the webcast through Aviat Network's Investor Relations website at investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company's investor relations website. Upcoming EventsAviat will participate in the upcoming 9th Annual Lake Street Capital Markets Best Ideas Growth Conference on September 11, 2025 in New York, NY. Investors interested in scheduling a meeting with the company should contact their representative at Lake Street Capital Markets. About Aviat NetworksAviat Networks, Inc. is the leading expert in wireless transport and access solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high performance products, simplified operations, and the best overall customer experience. Aviat is headquartered in Austin, Texas. For more information, visit www.aviatnetworks.com or connect with Aviat Networks on Facebook and LinkedIn. Forward-Looking StatementsThe information contained in this Current Report on Form 8-K includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including Aviat's outlook, business conditions, new product solutions, customer positioning, future orders, bookings, new contracts, cost structure, profitability in fiscal 2025, its recent acquisitions and acquisition strategy, process improvements, measures designed to improve internal controls, plans and objectives of management, realignment plans and review of strategic alternatives and expectations regarding future revenue, gross margin, Adjusted EBITDA, operating income or earnings or loss per share. All statements, trend analyses and other information contained herein regarding the foregoing beliefs and expectations, as well as about the markets for the services and products of Aviat and trends in revenue, and other statements identified by the use of forward-looking terminology, including "anticipate," "believe," "plan," "estimate," "expect," "goal," "will," "see," "continue," "delivering," "view," and "intend," or the negative of these terms or other similar expressions, constitute forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based on estimates reflecting the current beliefs, expectations and assumptions of the senior management of Aviat regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this document. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between Russia and Ukraine and the conflict in Israel and surrounding areas; continued price and margin erosion in the microwave transmission industry; the impact of the volume, timing, and customer, product, and geographic mix of our product orders; our ability to meet financial covenant requirements; the timing of our receipt of payment; our ability to meet product development dates or anticipated cost reductions of products; our suppliers' inability to perform and deliver on time, component shortages, or other supply chain constraints; the effects of inflation; customer acceptance of new products; the ability of our subcontractors to timely perform; weakness in the global economy affecting customer spending; retention of our key personnel; our ability to manage and maintain key customer relationships; uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation; our failure to protect our intellectual property rights or defend against intellectual property infringement claims; the results of our restructuring efforts; the effects of currency and interest rate risks; the ability to preserve and use our net operating loss carryforwards; the effects of current and future government regulations; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States and other countries where we conduct business; the conduct of unethical business practices in developing countries; the impact of political turmoil in countries where we have significant business; our ability to realize the anticipated benefits of any proposed or recent acquisitions; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; our ability to implement our stock repurchase program or that it will enhance long-term stockholder value; and the impact of adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions. For more information regarding the risks and uncertainties for Aviat's business, see "Risk Factors" in Aviat's Form 10-K for the fiscal year ended June 28, 2024 filed with the SEC on September 10, 2025, as well as other reports filed by Aviat with the SEC from time to time. Aviat undertakes no obligation to update publicly any forward-looking statement, whether written or oral, for any reason, except as required by law, even as new information becomes available or other events occur in the future. Investor Relations:Andrew FredricksonEmail: [email protected] Table 1 AVIAT NETWORKS, INC. Fiscal Year 2025 Fourth Quarter Summary CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Twelve Months Ended (In thousands, except per share amounts) June 27,2025 June 28,2024 June 27,2025 June 28,2024 Revenues: Product sales $ 67,405 $ 78,795 $ 287,657 $ 274,205 Services 47,935 37,865 146,949 133,878 Total revenues 115,340 116,660 434,606 408,083 Cost of revenues: Product sales 49,477 50,794 208,017 171,783 Services 26,397 24,727 87,153 91,568 Total cost of revenues 75,874 75,521 295,170 263,351 Gross margin 39,466 41,139 139,436 144,732 Operating expenses: Research and development 7,434 10,985 35,768 36,426 Selling and administrative 21,134 23,059 89,482 85,038 Restructuring charges 2,019 1,640 3,611 3,867 Total operating expenses 30,587 35,684 128,861 125,331 Operating income 8,879 5,455 10,575 19,401 Interest expense, net 1,806 916 6,058 2,337 Other (income) expense, net (3,106) (70) 941 158 Income before income taxes 10,179 4,609 3,576 16,906 Provision for income taxes 4,982 3,060 2,235 6,146 Net income $ 5,197 $ 1,549 $ 1,341 $ 10,760 Net income per share of common stock outstanding: Basic $ 0.41 $ 0.12 $ 0.11 $ 0.88 Diluted $ 0.40 $ 0.12 $ 0.10 $ 0.86 Weighted-average shares outstanding: Basic 12,709 12,597 12,681 12,182 Diluted 12,867 12,829 12,826 12,456 Table 2 AVIAT NETWORKS, INC. Fiscal Year 2025 Fourth Quarter Summary CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) June 27,2025 June 28,2024 ASSETS Current Assets: Cash and cash equivalents $ 59,690 $ 64,622 Accounts receivable, net 180,321 158,013 Unbilled receivables 105,870 90,525 Inventories 83,979 62,267 Assets held for sale — 2,720 Other current assets 33,715 27,076 Total current assets 463,575 405,223 Property, plant and equipment, net 17,453 9,480 Goodwill 19,655 8,217 Intangible assets, net 26,897 13,644 Deferred income taxes 88,149 83,112 Right of use assets 3,113 3,710 Other assets 14,454 11,837 Total long-term assets 169,721 130,000 Total assets $ 633,296 $ 535,223 LIABILITIES AND EQUITY Current Liabilities: Accounts payable $ 148,093 $ 92,854 Accrued expenses 38,897 42,148 Short-term lease liabilities 1,090 1,006 Advance payments and unearned revenue 73,735 58,839 Other current liabilities 1,757 21,614 Current portion of long-term debt 18,624 2,396 Total current liabilities 282,196 218,857 Long-term debt 68,966 45,954 Unearned revenue 8,063 7,413 Long-term lease liabilities 2,241 2,823 Other long-term liabilities 430 394 Reserve for uncertain tax positions 3,242 3,485 Deferred income taxes 4,975 412 Total liabilities 370,113 279,338 Commitments and contingencies Stockholder's equity: Preferred stock — — Common stock 127 126 Treasury stock (7,076) (6,479) Additional paid-in-capital 866,119 860,071 Accumulated deficit (577,172) (578,513) Accumulated other comprehensive loss (18,815) (19,320) Total stockholders' equity 263,183 255,885 Total liabilities and stockholders' equity $ 633,296 $ 535,223 AVIAT NETWORKS, INC. Fiscal Year 2025 Fourth Quarter Summary RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE To supplement the consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), we provide additional measures of gross margin, research and development expenses, selling and administrative expenses, operating income, provision for or benefit from income taxes, net income, net income per share, and adjusted income before interest, tax, depreciation and amortization (Adjusted EBITDA), in each case, adjusted to exclude certain costs, charges, gains and losses, as set forth below. We believe that these non-GAAP financial measures, when considered together with the GAAP financial measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on results in any particular period. We also believe these non-GAAP measures enhance the ability of investors to analyze trends in our business and to understand our performance. In addition, we may utilize non-GAAP financial measures as a guide in our forecasting, budgeting and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follow. 1We have not reconciled Adjusted EBITDA guidance to its corresponding GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to merger and acquisition costs and share-based compensation. In particular, share-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA are not available without unreasonable effort. Table 3 AVIAT NETWORKS, INC. Fiscal Year 2025 Fourth Quarter Summary RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1) Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Twelve Months Ended June 27,2025 % of Revenue June 28, 2024 % of Revenue June 27, 2025 % of Revenue June 28, 2024 % of Revenue (In thousands, except percentages and per share amounts) GAAP gross margin $ 39,466 34.2 % $ 41,139 35.3 % $ 139,436 32.1 % $ 144,732 35.5 % Share-based compensation 19 96 233 406 Merger and acquisition related expense 595 650 2,890 3,409 Non-GAAP gross margin 40,080 34.7 % 41,885 35.9 % 142,559 32.8 % 148,547 36.4 % GAAP research and development expenses $ 7,434 6.4 % $ 10,985 9.4 % $ 35,768 8.2 % $ 36,426 8.9 % Share-based compensation (78) (141) (534) (593) Non-GAAP research and development expenses 7,356 6.4 % 10,844 9.3 % 35,234 8.1 % 35,833 8.8 % GAAP selling and administrative expenses $ 21,134 18.3 % $ 23,059 19.8 % $ 89,482 20.6 % $ 85,038 20.8 % Share-based compensation (1,344) (1,559) (6,300) (6,342) Merger and acquisition related expense (6) (1,070) (4,896) (9,121) Non-GAAP selling and administrative expenses 19,784 17.2 % 20,430 17.5 % 78,286 18.0 % 69,575 17.0 % GAAP operating expense $ 30,587 26.5 % $ 35,684 30.6 % $ 128,861 29.7 % $ 125,331 30.7 % Share-based compensation (1,422) (1,700) (6,834) (6,935) Merger and acquisition and other expenses (6) (1,070) (4,896) (9,121) Restructuring (charges) recovery (2,019) (1,640) (3,611) (3,867) Non-GAAP operating expense 27,140 23.5 % 31,274 26.8 % 113,520 26.1 % 105,408 25.8 % GAAP operating income $ 8,879 7.7 % $ 5,455 4.7 % $ 10,575 2.4 % $ 19,401 4.8 % Share-based compensation 1,441 1,796 7,067 7,341 Merger and acquisition related expense 601 1,720 7,786 12,530 Restructuring charges 2,019 1,640 3,611 3,867 Non-GAAP operating income 12,940 11.2 % 10,611 9.1 % 29,039 6.7 % 43,139 10.6 % GAAP income tax provision $ 4,982 4.3 % $ 3,060 2.6 % $ 2,235 0.5 % $ 6,146 1.5 % Adjustment to reflect pro forma tax rate (4,582) (2,560) (635) (4,546) Non-GAAP income tax provision 400 0.3 % 500 0.4 % 1,600 0.4 % 1,600 0.4 % GAAP net income $ 5,197 4.5 % $ 1,549 1.3 % $ 1,341 0.3 % $ 10,760 2.6 % Share-based compensation 1,441 1,796 7,067 7,341 Merger and acquisition related expense 601 1,720 7,786 12,530 Restructuring charges 2,019 1,640 3,611 3,867 Other (income) expense, net (3,106) (70) 941 158 Adjustment to reflect pro forma tax rate 4,582 2,560 635 4,546 Non-GAAP net income $ 10,734 9.3 % $ 9,195 7.9 % $ 21,381 4.9 % $ 39,202 9.6 % Diluted net income per share: GAAP $ 0.40 $ 0.12 $ 0.10 $ 0.86 Non-GAAP $ 0.83 $ 0.72 $ 1.67 $ 3.15 Shares used in computing net income per share GAAP 12,867 12,829 12,826 12,456 Non-GAAP 12,867 12,829 12,826 12,456 Adjusted EBITDA: GAAP net income $ 5,197 4.5 % $ 1,549 1.3 % $ 1,341 0.3 % $ 10,760 2.6 % Depreciation and amortization of property, plant and equipment and intangible assets 2,110 1,265 8,045 4,993 Interest expense, net 1,806 916 6,058 2,337 Other (income) expense, net (3,106) (70) 941 158 Share-based compensation 1,441 1,796 7,067 7,341 Merger and acquisition related expense 601 1,720 7,786 12,530 Restructuring charges 2,019 1,640 3,611 3,867 Provision for income taxes 4,982 3,060 2,235 6,146 Adjusted EBITDA $ 15,050 13.0 % $ 11,876 10.2 % $ 37,084 8.5 % $ 48,132 11.8 % (1) The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP net income excluded share-based compensation, and other non-recurring charges (recovery). Adjusted EBITDA was determined by excluding depreciation and amortization on property, plant and equipment, interest, provision for or benefit from income taxes, and non-GAAP pre-tax adjustments, as set forth above, from GAAP net income. We believe that the presentation of these non-GAAP items provides meaningful supplemental information to investors, when viewed in conjunction with, and not in lieu of, our GAAP results. However, the non-GAAP financial measures have not been prepared under a comprehensive set of accounting rules or principles. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP financial measures. Table 4 AVIAT NETWORKS, INC. Fiscal Year 2025 Fourth Quarter Summary SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA (Unaudited) Three Months Ended Twelve Months Ended June 27,2025 June 28,2024 June 27,2025 June 28,2024 (In thousands) North America $ 58,017 $ 56,194 $ 207,606 $ 206,073 International: Africa and the Middle East 11,218 13,063 49,428 48,884 Europe 8,337 7,231 31,713 24,608 Latin America and Asia Pacific 37,768 40,172 145,859 128,518 Total international 57,323 60,466 227,000 202,010 Total revenue $ 115,340 $ 116,660 $ 434,606 $ 408,083 SOURCE Aviat Networks, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Aviat Networks Announces Fiscal 2025 Fourth Quarter and Twelve Months Financial Results

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